GERMAN CRISIS

Wanganui Chronicle, Volume 74, Issue 140, 16 June 1931, Page 7

GERMAN CRISIS

LOOTING BY UNEMPLOYED INDUSTRIALISTS PLAN COUP HELP FROM “STEEL HELMETS” By Telegraph—Press Association—Copy right. I LONDON, June 13. German finance is the chief topic ni London. On the Stock Exchange on Friday German bond prices dropped owing to unfounded rumours that Dr. Brueiiiiig was resigning. Al miu stage a semipanic prevailed. The Daily Express’ Berlin correspondent says that hunger and food riots and looting by tile unemployed nave occurred in several cities in the l jus; few days, clashes with the police being responsible for live being Killeu and 40 wounded. It is now reported that the Ruhr industrialists arc planning a coup d'etat wit' the aid ot 150,000 “Steel Helmets” with the object of establishing Herr Sefiact (ex-President of the Ke chsbank) as dictator of Germany. Another message s ates that President von Hindenburg has granted Dr. Bruening the fullest powers to cope with the threatened political crisis, m eluding dissolution oi the Reichstag. A week ago President Hindenburg signed new nnancial decrees which arc expected to yield £90,000,000 -ind turn a deficit of £62,000,1100 into a surplu of £28,000,000. Practically every German is affected by the decrees. The pensions of 660,000 war invalids have beer reduced 10 per cent., and an even greater number of widows and orphans nave been similarly reduced. An addition of 200,000 will be made to the present 500,000 workless who receive no benefit of any description from rhe Government. All taxpayers will be subject to a new income tax. FLIGHT OF CAPITAL GERMAN BANKERS ALARMED INTEREST RATE RAISED BE ULIN, June 14. The Ambassadors at Paris, Rome and Washington have been invited to Berlin immediately to report upon the feeling towards a revision of reparations. The Ambassador in London is not included as the Chequers visit has revealed the British attitude. The Reiehsbank has raised the dis count rate from 5 to 7 per cent, owing to the demand for foreign currency, due to scaremongers, amounting yesterday to £10,000,000. The interest rate has been advanced from 6 to 8 per cent. Meanwhile the flight of capital is increasing. It is estimated that since June 1, £25,000,000 has been withdrawn from Germany. Dr Luther (Reiehsbank President) has appealed to the other banks to check the flight. He points out that £525,000,000 for foreign investments has already left the country.